(Reuters) – Dr. Lal PathLabs, India’s top diagnostics firm by revenue, reported a bigger-than-expected second-quarter profit on Wednesday, driven by continued demand and a rising awareness for health and wellness.
The company’s consolidated net profit increased 18% year-over-year to 1.29 billion rupees ($15.4 million), increasing for the sixth quarter in a row.
That beat analysts’ estimates of 1.26 billion rupees, according to estimates compiled by LSEG.
The company, which operates about 300 labs in India, said the number of samples it tested climbed 10% and that it is building back volumes.
Analysts said awareness regarding health and wellness is rising in the country and, along with Dr. Lal PathLabs’ expansion into smaller cities, is boosting demand for medical tests. They also said the company is expected to benefit from price hikes.
However, Dr. Lal PathLabs did not specify if it raised prices of its tests.
The company’s revenue from operations increased 10% to 6.6 billion rupees, beating analysts’ estimates of 6 billion rupees.
Rival Metropolis Healthcare is yet to report its September quarter results. ($1 = 84.0490 Indian rupees)
(Reporting by Kashish Tandon in Bengaluru; Editing by Savio D’Souza)
